/GILT SUMMARY: UK Conservative..........>

EGB SUMMARY: /GILT SUMMARY: UK Conservative leadership candidate Matt Hancock

has pulled out of the race following Boris Johnson's emphatic result in

yesterday's first round ballot. 

- The Sep-19 gilt future trades at 130.52, up 18 ticks from Thursday's close and

15 ticks off the day's low; L-H: 130.37-130.68.

- Gilts yields are 1-2bps lower on the day. Cash yields (Last / 1d chg / L..H):

2Y (0.5727% / -0.9bp / 0.571%...0.5833%); 5Y (0.6044% / -1.3bp /

0.6027%...0.6152%); 10Y (0.8207% / -1.4bp / 0.8188%...0.8324%); 30Y (1.4136% /

-1.5bp / 1.412%...1.4252%). The curve has bull flattened: 2s10s (23.8bp / -0.8bp

/ 23.6bp..24.4bp); 2s30s (83.1bp / -0.9bp / 83.1bp..84.5bp)

- The bund curve has bull flattened with 2s30s down 2bp on the day.

- The very long-end of the OAT curve has similarly outperformed. The 30-year

benchmark yield trades at 1.052% and down 4bp.

- BTPs have been bid this morning with yields 4-6bp lower.